F & 0: FAQs FAQ (FuturePLUS Stop Loss Limit Margin) . What is FuturePLUS with Stop Loss Limit Margin (i.e. With Cover SLTP Order)? FuturePLUS with Stop Loss Limit Margin (i.e. With Cover SLTP Order) is an intra day product having an order placement feature wherein you place two orders simultaneously wherein Fresh order will be a market order and with the second order you limit your loss on every position by necessarily placing a cover order specifying the Stop Loss Trigger Price (SLTP) and a Limit Price. Since the FuturePLUS with Stop Loss Limit Margin position gives a clear view of maximum downside involved in a particular position, ICICI Securities Limited (I-Sec) would block margin to the extent of the maximum loss which you may suffer on that position. ICICI Securities at its discretion may charge higher margin if it deems appropriate . What is fresh order? The order which is placed for creating the position is called fresh order. The fresh order is always a Market order. «Can I place a limit fresh order? No, fresh order is always a market order and limit fresh order under this feature is not allowed. . What is a cover order? The fresh order as defined above creates an open position in FuturePLUS with Stop Loss Limit Margin product. The cover order is an opposite order taken by you to close your open position. Assuming you have taken a buy position, your cover order will naturally be a sell order. The cover order will compulsorily have to be a Cover SLTP (Stop Loss) order. - Can I place a cover profit order? No, currently this feature is not available in FuturePLUS with Stop Loss Limit Margin product. «Can I place Stop Loss order after the Fresh position is taken? No. You will need to compulsorily place Stop Loss order along with your Fresh order. In this product you will not be allowed to place the Stop Loss order after placing the fresh order. - Can I place FuturePLUS with Stop Loss Limit Margin orders in all contracts? Only select contracts have been enabled for trading under the FuturePLUS with Stop Loss Limit Margin product. Only those contracts, which meet the criteria on liquidity and volume have been enabled for trading under this product. I-Sec reserves the right to select the contracts for FuturePLUS with Stop Loss Limit Margin product and may, at its sole discretion, include or exclude any contract for trading in this product without any prior intimation. - From where do I place FuturePLUS with Stop Loss Limit Margin orders ? You can place orders in FuturePLUS with Stop Loss Limit Margin product by visiting the existing 'Place Order’ with product type as 'FuturePLUS' and Fresh order selection "With Stop Loss Limit Margin’ under the F&O trading section. In case this selection is done then both Freshand Cover SLTP orders can be placed simultaneously from the same page. - What is a Cover Stop Loss order? A Cover Stop loss order allows you to place an order which is sent to the Exchange alongwith fresh order but gets activated and is triggered only when the market price of the relevant underlying reaches or crosses a trigger price specified by youin the form of 'Stop Loss Trigger Price’. When a Stop Loss Trigger Price (SLTP) is specified in a limit order, the order remains passive (i.e. not eligible for execution) till the price of the underlying crosses the specified SLTP. Once the last traded price of the underlying reaches or surpasses the SLTP, the order becomes activated (i.e. eligible for execution at the exchange) and once triggered behaves like a normal limit order. It is used as a tool to limit the loss on a position. Examples: Cover Stop Loss Buy Order ‘A’ takes a short (sell) position in underlying NIFTY at Rs. 6000 in expectation that the price will fall. However, in the event the price rises above his sell price ‘A’ would like to limit his losses. ‘A’ may place a limit buy order specifying a Stop loss trigger price of Rs.6050 and a limit price of Rs. 6055. The stop loss trigger price (SLTP) has to be between the last traded price and the buy limit price. Once the market price of underlying NIFTY touches or crosses the SLTP i.e. Rs. 6050, the order gets converted to a limit buy order at Rs. 6055 Cover Stop Loss Sell Order ‘A’ takes a long (buy) position in underlying NIFTY at Rs. 6000 in expectation that the price will rise. However, in the event the price falls, 'A' would like to limit his losses. 'A' may place a limit sell order specifying a Stop loss trigger price of Rs. 5950 and a limit price of Rs. 5945. The stop loss trigger price has to be between the limit price and the last traded price at the time of placing the stop loss order. Once the last traded price touches or crosses Rs. 5950, the order gets converted into a limit sell order at Rs, 5945, Important Please note that in a buy order, the SLTP should be a price lower than the buy price i.e less than the last traded price. An SLTP cannot be placed for a price that has already been surpassed by the market when the SLTP is being placed. Similarly, in case of a stop loss sell order the SLTP should be greater than the sell price of fresh order i.e. higher than the last traded price. - What are the details required to be given to place a fresh order? Following details should be provided to place a fresh order; Exchange Stock Code Contract Details Action (Buy/Sell) Quantity Order Type - Market ee oe . Are the fresh orders and cover SLTP orders to be placed together? Yes, the fresh and cover orders under FuturePLUS with Stop Loss Limit Margin product are to be placed together. . Should the quantity of fresh and cover SLTP order be the same? Yes, the quantity will be same for fresh and cover SLTP order.. What are the details for a cover SLTP order? The details for a cover SLTP order are as follows: 1, Exchange 2. Contract Details 3. Action (Buy/Sell) 4. Quantity 5. Order Type - Limit 6. Stop Loss Trigger Price 7. Limit Price The first 4 values would be automatically picked up from the Fresh order details. The Stop Loss Trigger Price value is required to be entered by you which would be the trigger price and the order gets activated once the market price of the relevant security reaches or crosses this threshold price. The value for limit price would automatically appear in the Limit Price field based on the minimum difference % for the stock between the Limit Price compared to the Stop Loss Trigger Price (SLTP) or can be entered by you . . Can I cancel the cover SLTP order? No, cover SLTP order cannot be cancelled. . Can I modify the cover SLTP order? Yes, you can modify the price of your cover SLTP order subject to the Trigger price conditions being fulfilled, You can even modify the Cover SLTP order to a Market order. Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously, you also place the sell (cover SLTP) order of 1000 quantity at Limit price 90/- and SLTP 95/-. The above trigger condition is defined with a view to curtail losses. If subsequently the current market price shoots up to 110/-. You can modify the order as below Limit price 103/- SLTP 108/- (i.e. SLTP can be placed upto 110) or alternatively you can modify the order to market and book profits. - What is the quantity that can be submitted for fresh orders? The maximum quantity that can be submitted for fresh orders is the total of best $ Bid/Offer quantities that is available in the best bids and offers. If the quantity that you input is greater than the quantity available in the best 5 bids and offers then the order will not go through. Assuming that you want to place a buy order for 5000 quantity @ 100, and the first 5 offer quantity available for the buy order are as under: Offer Qty. | Offer Price 1500 1000 97In the above scenario, the first 5 Offer quantity available is 3600 and since the buy order quantity placed is $000 which exceeds the best 5 offer quantity, it would be rejected by the system. Similar would be the case for Sell order, wherein if the total sell qty is greater than the sum of first 5 Bid quantity available then it would be rejected. The maximum order qty to be placed should be equal to the first 5 bid/offer quantity available at that point of time . What will be the price at which margin for an order will be calculated? For fresh orders the price would be calculated as the weighted average price of the best 5 bids and offers available for calculating the margin requirement. If the following offers are available in the best 5 bids and offers and the client places a Buy order for quantity of 600. Best 5 bids | Best 5 offers Qty. | Price | Qty. | Price 150 }8 — /150 J 11 150 5.5 | 150 |11.5 300 5 300 | 12 o (0 150 13 o 0 et) Calculation of Buy price Qty | Price Value 150}11 | 1,650 150 }11.5 | 1,725 300 }12 | 3,600 600 | - 6,975 Weighted average price would be 11.63 = (6,975/600) which would be used for calculating the margin requirement for this order. . What is the margin that is charged on the fresh order? Margin in case of fresh order is charged to the extent of maximum possible loss that you may incur plus a additional margin calculated at the SLTP margin % specified, if any, for the underlying in the stock list page. In case of fresh buy order it is calculated as {(Weighted average price of fresh order - limit price of cover SLTP order) * Quantity of shares} + {(Weighted average price of fresh order * quantity of shares) * SLTP margin %, if any, for the stock} Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution price. Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. The SLTP margin percentage for the scrip is either 0 or 10%.In this case margin amount would be blocked as (Weighted average price of fresh order * quantity of shares)* additional margin% +( weighted average price of fresh order - limit price of cover SLTP order)* quantity of shares In case the additional margin percentage is 0% (100*1000)*0%) +(100-90)*1000) = 10,000/- In case the additional margin percentage is 10% (100#1000)*10%) +(100-90)*1000) = 20,000/- . Would the margin be recalculated when the order gets executed? Yes, at the time of order placement the current market price or weighted average price upto the best five bids or offers as applicable at that point of time is considered. It may happen that execution happens at a different price than the one at which limits have been blocked. Thereby, margin is recalculated taking into consideration the actual execution price of the order. . Would the margin be recalculated at the time of modification? Yes, it is recalculated and excess amount if any will be released or additional margin needed will be blocked if you change the limit price of your cover SLTP order. In the above example where additional margin % is 10%, if you modify the SLTP to 98/- and limit price to 92/-, The amount to be blocked would be recalculated as: (100*1000)*10%) +(100-92)*1000) = 18000/- The excess amount of 2000/- would be released and added in your limit. In the above example where additional margin % is 10%, if you modify the limit price of your cover SLTP order to 88/- difference amount would be recalculated as (100*1000)*10%) +(100-88)* 1000 = 22000/- Additional amount of 2000/- would be blocked. If limits are insufficient then you will be unable to modify the order. -Is the SLTP minimum difference % between SLTP and Limit price of Cover SLTP order different for different underlying? Yes, I-Sec would define different SLTP minimum difference percentage for different underlying depending upon the volatility and market conditions of the stock . What is the difference between limit price and SLTP price that can be specified for a Cover SLTP Order? Depending on the stock volatility and market situation, I-Sec Ltd would specify the SLTP minimum difference % between limit price and SLTP of your cover SLTP order that can be maintained on order placement and modification for a particular stock. This percentage could be revised by I-Sec even during the day. Existing orders would be unaffected by the revision but however if the orders are modified the revised percentage would apply. The value for Limit Price would automatically appear in the Limit Price field based on the minimum difference % for the stock between the Limit Price compared to the Stop Loss Trigger Price (SLTP). Example: A 1% difference has to be maintained between the limit price and SLTP for cover SLTP order for NIFTY, You have taken a buy position (fresh order) for 100 shares in NIFTY at Current price of 6005/-.You specify the sell order (Cover SLTP order) for 100 shares in NIFTY at SLTP of 6000/-. Since this is a sell cover SLTP order the limit price would be lower than the SLTP. Limit price of Rs 5940/- = (6000-(6000*1%)) will automatically appear in the Limit Price field. . Where can I see the SLTP minimum difference % for a particular underlying? You can view the SLIP minimum difference % between SLTP and Limit price of your cover order for various underlying by visiting the Stock List link under the F&O trading section of www icicidirect.com « How does the concept of FuturePLUS with Stop Loss Limit Margin work? Example Assume you take a sell position for the fresh order of 1000 shares at current market price of 100/-. Simultaneously you also place the SLTP buy (cover order) of 1000 shares at SLIP 108/- and Limit price 112/-. The above example can be analyzed as follows Apart from an additional margin on the fresh order value which is normally 0, the maximum loss amount would be blocked on the fresh order and cover SLTP order as difference between current market or weighted average price of Fresh order and limit price of cover SLTP order. (112 100)*1000= 12,000/-. The fresh order is a market order which will get executed at the market price available at that point of time. If the order gets executed as 101/-, revised amount of 1000/- would be released. The cover order would remain in the ordered state. Current market price rises - Position is making a loss: Once the current market price starts rising and reaches 108/-, the cover SLTP order would be triggered to a limit order with price 112/-. The cover SLTP order would get executed at the best prices available up to the SLTP limit price of 112/-. Current market price falls - Position is making a profit: You can choose to modify the buy cover SLTP order to a market order to immediately book profits at market price. - If the Cover SLTP order gets rejected by Exchange, will I be able to re-enter the Cover SLTP Order? Yes, you would be able to place Cover SLTP Order from the Open Positions screen where a link named ‘Order’ will appear if the same is rejected by Exchange . What happens to the open position remaining at the end of the day? In case of FuturePLUS with Stop Loss Limit Margin product, all the positions created for the day are expected to be squared off by the customers before the market closes as this is an Intra day product. In case, if the positions still remains open at the end of day, I-Sec on best effort basis would initiate the Square off process at market price for all the open positions. If for any reason position still remains open after end of day then it will be treated as Futures position by exchange and all obligations and margin as applicable to Futures would apply to such open positions. If sufficient margin is not available with you towards such open positions, exchange would levy a short margin collection penalty which I-Sec shall recover from you. - Will there be any Mark to Market process like in normal FuturePLUS trading? No. Since the feature of cover SLTP order is available which also indicates the maximum downside involved in a particular position, there is no need of mark to market process.- Do I have the option of Add Margin? No. The option of Add Margin is not available, since it is not relevant due to absence of Mark to Market process in FuturePLUS with Stop Loss Limit Margin product. - Where do I view my open positions? You can view your positions on the Open Positions page of your www. icicidirect.com account. - Can I-See disable a scrip from trading in FuturePLUS with Stop Loss Limit Margin product during the day? Yes, I-Sec can disable a scrip from trading in FuturePLUS with Stop Loss Limit Margin product during the day. - What will happen to the orders that I have placed in such disabled serip's? You will be unable to place new orders in such scrip's, However, you can modify the orders already placed. To square off such positions you can modify cover SLTP order to a market order in both the exchanges - What would be the brokerage payable on these trades? The Brokerage for FuturePLUS with Stop Loss Limt Marign orders would be the normal brokerages charged currently on similar lines to that of exsiting FuturePLUS orders. You can refer the latest brokerage schedule on our website www.icicidirect.com on the path Customer service page > Important Information > Brokerage.